Honiton businesses' Coronavirus insurance claims refused – MP writes to Chancellor
By The Editor
17th Sep 2021 | Local News
Honiton's MP Neil Parish has written to the Chancellor today after a number of Honiton businesses have had business interruption insurance claims refused.
Mr Parish told Chancellor Rishi Sunak MP that before the Coronavirus outbreak many hospitality businesses in the town had taken out policies covering against interruption to their business but many claims have now been refused.
Honiton's MP took to social media today to explain why he has taken the matter to the Chancellor, he said: "I have written to the Chancellor about the behaviour of insurance companies. Too many businesses are being denied compensation during this challenging period.
"Insurers must no longer neglect the responsibility they have to their customers."
In his letter to the Chancellor Mr Parish laid out the problems his constituents have had, he wrote: "Several of my constituents have contacted me illustrating their frustration at the behaviour of insurance companies during the COVID-19 outbreak.
"Prior to the outbreak, many hospitality businesses (B&Bs and self-catering properties among others) bought policies covering against business interruption as a result of infectious diseases.
"These policies were taken out in good faith and of the understanding they would be covered against this unlikely eventuality. Disappointingly, a large majority of these claims have since been refused.
"One such provider, the RSA, has consistently refused to provide compensation to my constituents.
"A self-catering cottage and glamping business, based within Honiton, has attempted to make a claim via their Cottagesure Policy. Time and again, RSA has refused to provide the business with much-needed compensation. RSA states it was the Government's lock down, not the disease, that lead to an interruption of business. Similar reasonings have been given by other firms.
"Businesses do not pay weighty premiums only to be refused compensation due to arbitrary justifications. Insurers must no longer neglect the responsibility they have to their customers and pay their fair share during this unprecedented period.
"What pressure can the Government place upon insurance companies to ensure compensation is readily paid to businesses claiming for business interruption?"
If you have had problems with a businesses interruption insurance claim please get in touch with Nub News, email [email protected].
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